GM/UAW

Carl Remick cremick at rlmnet.com
Wed Jul 29 10:38:04 PDT 1998


What are the implications, if any, of this settlement for GM's vaunted new model of operation, the Saturn subsidiary?

-----Original Message----- From: Doug Henwood [mailto:dhenwood at panix.com] Sent: Wednesday, July 29, 1998 1:28 PM To: lbo-talk at lists.panix.com Subject: Re: GM/UAW

Frances Bolton (PHI) wrote:


>15% increase in production quotas, and a promise from GM to not close
or
>sell two factories before Jan. 1999? An auto analyst for Paine Webber
ws
>quoted as saying, "I think the market expected GM to deliver a knockout
>blow, and they didn't."
>
>Looks like the UAW backed down because of the lawsuit and threat of
>arbitration. Looks like GM won.

My guess is that the UAW won the battle, but that GM will continue with its strategy of plant relocation and outsourcing. I wonder what Alan Greenspan thinks of this - there probably would have been no strike at all if unemployment were closer to 7% than 4%.

Doug



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